Oil prices dip on rising virus cases; expected stock draw stems losses

Oil prices slipped on Tuesday as investors remained concerned about climbing coronavirus cases globally, but expectations of a drawdown in crude oil inventory in the United States for a fifth straight week kept losses in check. Brent crude oil futures slipped 10 cents, or 0.2%, to $55.56 a barrel by 0500 GMT, while U.S. West Texas Intermediate (WTI) fell 8 cents, or 0.2%, to $52.17 a barrel.

Worldwide coronavirus cases surpassed 90 million on Monday, according to a Reuters tally, as nations around the globe scramble to procure vaccines and continue to extend or reinstate lockdowns to fight new coronavirus variants. In Asia, Japan is planning to widen a state of emergency beyond its capital Tokyo to stem the spread of COVID-19 while China is implementing movement curbs in some parts of the country.

Brent could rise to per barrel by summer 2021, Goldman Sachs said, driven by Saudi cuts and the implications of a shift in power to the Democrats in the United States. The Wall Street investment bank had previously predicted oil would hit by year-end.

Oil prices dip on rising virus cases; expected stock draw stems losses, Reuters, Jan 12